Maya Chidiac| Updated February 23rd, 2024
Interest rates on saving accounts in Germany and other European countries were kept low for several years to stimulate economic growth and fight low inflation. Over the last months, the European Central Bank (ECB) has been steadily raising its key interest rates, making placing money in savings accounts more and more attractive for investors.
In Germany, you can find various savings account options depending on your specific needs and preferences. You can place your money in a fixed-term account with a fixed interest rate or use the alternative and place your money in a savings account with flexible access to your money but with a variable interest rate.
In this article, we will explore Germany’s best saving accounts for flexible or call saving accounts (Tagesgeldkonto) and fixed deposit accounts (Festgeldkonto). We will discuss their interest rates, management fees, investment amounts, and other conditions. Additionally, we will answer the question of how to open a savings account in Germany, providing the list of requirements needed.
Best Flexible or Call saving accounts in Germany
A flexible saving account refers to a type of savings account that allows its holder to withdraw or “call back” his funds on demand without restrictions or penalties and usually without any notice period. It provides a high degree of liquidity and flexibility. The interest rate on call saving accounts is variable and depends on market conditions. In Germany, flexible saving accounts are called Tagesgeldkonto, and their specific features and terms vary depending on the financial institution’s specific offerings.
Below is a comparison of the best flexible saving accounts in Germany:
| Bank/Provider | Trading 212 | Trade Republic | Barclays | TF Bank | Comdirect | Wise | ConsorsBank | ING Bank | Lightyear |
| Promotional Interest Rate | 4.20% | 4.00% | 3.85% for the first 6 months | 3.80% for the first 3 months | 3.75% for the first 6 months | 3.66% no promotional period | 3.50% for the first 6 months | 3.30% for the first 6 months | 3.25% |
| Interest Payments | Monthly | Monthly | Annually | Monthly | Quarterly | Monthly | Quarterly | Annually | Monthly |
| Amount | No limitations | Up to EUR 50,000 | Up to EUR 250,000 | Up to EUR 100,000 | Up to EUR 1,000,000 | No limitations | Up to EUR 1,000,000 | Up to EUR 250,000 | No limitations |
| Extension Possibility of the promotional period | N/A | N/A | No | No | Yes, for 6 more months when opening a comdirect current or custody account | N/A | No | No | No |
| Rate applied after promotional period | N/A | N/A | 1.20% | 1.45% | 0.75% | N/A | 1.00% | 1.25% | N/A |
| Call availability | Anytime | Anytime | Anytime | Anytime | Anytime | Anytime | Anytime | Anytime | Anytime |
| Account Fees | Free | Free | Free | Free | Free | Fees applicable when transferring or converting the cash | Free | Free | Free |
| Deposit Insurance | Not Available | Available | Available | Available | Not Available | Not Available | Available | Available | Available |
Updated as of 23/02/2024
Best fixed term saving accounts in Germany
As its name implies, a fixed term savings account is a type of savings account where the funds deposited are locked for a specified period, ranging from a few months to several years. The duration is predetermined, and money cannot be withdrawn before maturity. The interest rate is typically fixed for the entire term and is generally higher than other saving accounts. In Germany, fixed deposit saving accounts are called Festgeldkonto, and their specific terms and conditions vary among different banks.
Below is a comparison of the best fixed-term saving accounts in Germany:
| Bank | Holm Bank | Collector Bank | Klarna | Credit Agricole | ViviBanca |
| Interest rate for 6 months | 4.05% | 3.40% | 3.37% | 2.90% | N/A |
| Interest rate for 12 months | 4.20% | 3.50% | 3.67% | 3.40% | 3.70% |
| Interest rate for 24 months | 3.40% | 2.00% | 3.67% | 3.20% | 3.55% |
| Minimum amount | EUR 500 | EUR 500 | EUR 5,000 | N/A | EUR 25,000 |
| Maximum amount | EUR 100,000 | EUR 85,000 | EUR 500,000 | EUR 500,000 | EUR 100,000 |
| Deposit Protection | Available | Available | Available | Available | Available |
| Account fees | Free | Free | Free | Free | Free |
Updated as of 23/02/2024
Flexible savings account in Germany Reviewed
Trading 212 Flexible Savings Account
UK fintech company Trading 212, with over €3.5bn in customer assets, has been around a long time and has one of the best services around when it comes to investing. With many innovative features, such as their PIEs and AutoInvest, you can make investing as simple as you like. Interested in knowing more about this broker? Read our Trading 212 Review.
Advantages
- A 4.20% interest rate is applied to your balance for an unlimited period
- No minimum is required
- Free maintenance fees on your account
- Daily interest accruals paid monthly into your account
- No maximum amount limitation
Drawbacks
- Interest rates can change without prior notice
- No physical branch in Germany
Trade Republic Flexible Savings Account
Trade Republic is a German broker founded in 2015. Keen to onboard new customers, Trade Republic was quick to offer customers 4% interest on their uninvested cash. As Trade Republic is a broker, you’ll have the added benefit of being able to invest in stocks, ETFs, and many other financial instruments. Do you want to get more information on this broker? Read our Trade Republic Review.
Advantages
- A 4.00% interest rate is applied to your balance for an unlimited period
- No minimum is required
- Free maintenance fees on your account
- Daily interest accruals paid monthly into your account
Drawbacks
- A maximum amount of EUR 50,000
- No physical branch of the bank in Germany
- Interest rates can change without prior notice
Barclays flexible savings account
Barclays is a well-known global British bank that operates in various countries, including Germany. The bank has an independent German Branch that focuses on credit cards, loans and investment services and has a competitive, flexible savings account offering.
Advantages
- 3.85% interest rate paid for a period of 6 months for new customers
- 1.20% is applied after the 6 months period which is among the highest flexible interest rates paid in Germany
- Free maintenance fees on your account
- Deposits up to EUR 100,000 are guaranteed by the Irish compensation scheme Deposit Guarantee Scheme (DSG), Central Bank of Ireland and also with the German deposit protection fund of the Bundesverband deutscher Banken eV.
Drawbacks
- A maximum amount of EUR 250,000
- Interest paid annually, so you cannot benefit from compounded interest
- No joint accounts
TF Bank Flexible Savings Account
While TF Bank primarily operates in Sweden, it also provides services to customers in Germany. It operates solely online and is the highest interest paying bank in our comparison, not only for the promotional four month period but also for the flexible base rate applied when it ends.
Advantages
- 3.80% interest rate for 6 months for new customers (the highest in our comparison)
- Interest paid monthly so you can benefit from compounded interest
- 1.20% rate applied after the four months (the highest in our comparison)
- Free maintenance fees on your account
- Deposit is secured up to SEK 1,050,000 (around EUR 88,000) by the Swedish state deposit insurance
Drawbacks
- A maximum amount of EUR 100,000
- No physical branch of the bank in Germany
- Customer support is available in English and Swedish only
- The bank does not pay taxes from your interest-generated income, since it doesn’t have a physical branch in Germany, so you must file those in your tax declaration. Interest-generated income must be declared by the customer in Germany
Comdirect Flexible Savings Account
Comdirect Bank, a subsidiary of Commerzbank, is an online bank in Germany that offers various financial products, including saving accounts. Their main savings account is “Comdirect Tagesgeld PLUS” (Comdirect Call Money PLUS). This account offers a variable interest rate and allows you to access your funds without restrictions.
Advantages
- 3.50% interest rate applied for a period of 6 months for new customers
- Interest paid quarterly so you can benefit from compounded interest
- Possible extension of the promotional benefits for an additional 6 months if you open a Comdirect current account or a custody account
- Free maintenance fees on your account
- Deposits up to EUR 100,000 are guaranteed by the statutory deposit guarantee scheme provided by the Entschädigungseinrichtung deutscher Banken (EdB).
- Individual or joint account options
Drawbacks
- A maximum amount of EUR 100,000
- 1.00% is applied after the 6 months period, a relatively low-interest rate compared to other banks
- Support in English is unavailable
Wise Flexible Saving Account
Wise, formerly known as TransferWise, is a foreign exchange financial technology company based in the UK. It targets primarily people looking to send and receive money internationally in a cost-effective way. With Wise, you can hold your money in the form of cash, stocks or interest. By choosing the interest form, your funds will be invested in government-backed short-term loans and bank deposits, and the interest earned will be passed to you.
Advantages
- 3.66% interest rate paid with no period limitation.
- Interest paid monthly so you can benefit from compounded interest
- No restrictions or limits on the interest earned
Drawbacks
- Deposits are not covered by a deposit guarantee scheme, but the company does have some safeguards in place for customer funds on European accounts.
ConsorsBank flexible savings account
Consorsbank (formerly known as Cortal Consors) is a reputable bank in Germany that offers various financial products, including saving accounts. The bank provides different types of saving accounts, including its Tagesgeld Plus (Call Money Plus) account.
Advantages
- 3.50% interest rate paid for a period of 6 months for new customers
- A maximum amount of EUR 1,000,000
- Interest paid quarterly so you can benefit from compounded interest
- Deposits up to EUR 100,000 are guaranteed by the statutory deposit guarantee scheme provided by the Entschädigungseinrichtung deutscher Banken (EdB).
- Individual or joint account options
Drawbacks
- 1.00% interest rate is applied after the 6 months period, the lowest rate in our comparison
- A bit complicated requirements when opening a new account
ING Bank Flexible Savings Account
ING Bank is a multinational bank headquartered in the Netherlands. This bank provides online banking services allowing you to conveniently manage your accounts through their website. ING offers a flexible savings account in Germany called the daily money account.
Advantages
- 3.30% interest rate for a period of 6 months for new customers.
- 1.25% current interest rate applied after the 6 months period
- Free maintenance fees on your account
- Flexible account management via website or mobile app
- Deposits up to EUR 100,000 are guaranteed by the Dutch Deposit Insurance scheme
Drawbacks
- A maximum amount of EUR 50,000
- Interest paid annually so you cannot benefit from compounded interest
Lightyear Flexible Savings Account
Lightyear is a European investment app that operates via the entity Lightyear Europe AS, authorized and regulated by the Estonian Financial Supervision Authority (EFSA – license number 4.1-1/31), with clients’ assets covered up to €20,000. Do you want to get more information on this broker? Read our Lightyear Review.
Advantages
- A 3.25% interest rate is applied to your balance for an unlimited period
- No minimum is required
- Free maintenance fees on your account
- Daily interest accruals paid monthly into your account
- No maximum amount limitation
Drawbacks
- Interest rates can change without prior notice
Fixed Term saving accounts in Germany Reviewed
Holm Bank fixed term saving account
Holm Bank is a financial institution established in Estonia. It mainly focuses on loans, credit cards and business loans for SMEs. In Germany, the bank offers fixed-term saving accounts that can be easily opened without withholding tax in Estonia.
Advantages
- 4.20% fixed interest rate paid on amounts blocked for 1 year
- No cost or fees applicable
- Deposits up to EUR 100,000 are guaranteed via the statutory deposit insurance in Germany.
- Account can be opened in just a few steps
Drawbacks
- A maximum amount of EUR 100,000
- No access to your funds before the end of term
- The bank does not pay taxes from your interest-generated income since it doesn’t have a physical branch in Germany, so you must file those in your tax declaration.
Collector Bank fixed term saving account
Collector Bank AB is a Swedish digital bank that offers financial solutions to retail and corporate customers. It is a wholly owned subsidiary of Collector AB, listed on Nasdaq Stockholm. The bank services in Germany include credit solutions, digital finance products and saving accounts.
Advantages
- 3.50% fixed interest rate paid on amounts blocked for 1 year
- A minimum amount of EUR 500 only
- No cost or fees applicable
- Deposits up to EUR 100,000 are guaranteed via the statutory deposit insurance in Germany.
Drawbacks
- Low-interest rates on amounts blocked for 6 months or 2 years.
- The bank does not pay taxes from your interest-generated income since it doesn’t have a physical branch in Germany, so you must file those in your tax declaration.
Klarna fixed term saving account
Klarna is primarily known in Germany for its “shop now, pay later” platform that provides interest-free instalment loans for shoppers. Klarna Bank AB was founded in Sweden, and it moved more squarely into the German banking sector in 2021. The bank offers saving accounts with no minimum amount required and competitive interest rates.
Advantages
- 3.67% fixed interest rate paid on amounts blocked for 1 year
- No cost or fees applicable
- Deposit is secured up to SEK 1,050,000 (around EUR 88,000) by the Swedish state deposit insurance
Drawbacks
- Identity verification procedure for new fixed- term deposit customers. You should use the Postident procedure to identify yourself that requires you to go to a Deutsche Post branch (German postal services) to identify yourself
- A maximum amount of EUR 500,000
- No access to your funds before the end of term
Crédit Agricole Consumer Finance fixed term saving account
Crédit Agricole Consumer Finance is a division of the French banking group Crédit Agricole that focuses on consumer lending and financial services. In Germany, the bank offers a range of products, including personal loans, credit cards and saving accounts. The Crédit Agricole saving account offers competitive interest rates of up to 4.10% on amounts blocked for 2 years.
Advantages
- 3.40% fixed interest rate paid on amounts blocked for 1 year (the highest in our comparison)
- 3.20% fixed interest rate paid on amounts blocked for 2 years
- No cost or fees applicable
- Account can be opened in just a few steps
- Deposits up to EUR 100,000 are guaranteed via the statutory deposit guarantee fund in France – the Fonds de Garantie des Dépôts et de Résolution (FGDR).
Drawbacks
- The investment capital for new customers must come from a German bank account
- A maximum amount of EUR 500,000
- No access to your funds before the end of term
ViViBanca fixed term saving account
ViViBanca is an Italian Bank headquartered in Turin. The bank is an independent financial institution that specializes in retail financing. In Germany, ViViBanca offers saving accounts with up to 4.15% interest rate paid on amounts blocked for 2 years, with no withholding tax in Italy.
Advantages
- 3.55% fixed interest rate paid on amounts blocked for 2 years (the highest in our comparison)
- No cost or fees applicable
- Deposits up to EUR 100,000 are guaranteed via the statutory deposit insurance in Germany.
Drawbacks
- The minimum term period is 1 year
- A minimum amount of EUR 25,000
- A maximum amount of EUR 100,000
- No access to your funds before the end of the term
- The bank does not pay taxes from your interest-generated income since it doesn’t have a physical branch in Germany, so you must file those in your tax declaration.
How to open a savings account in Germany
To open a savings account in Germany, you can follow these general steps:
1 – Choose your most suitable bank by comparing each bank’s savings account offerings:
Interest rates, account management fees, bank’s reputation, funds’ access, and any specific limitations that may apply.
2 – Gather the required documents:
Before you start your application, make sure you gather all the required documents. Requirements for saving accounts in Germany aren’t high, you only need the following:
- Valid identification document: German ID or passport
- Proof of residency in Germany: Rental agreement or utility bill or bank statement that shows your residential address in Germany.
- Tax identification number: Interest-generated income is taxable in Germany. However, you can benefit from a tax exemption order called Freistellungsauftrag of up to 1,000 euros for individual accounts and 2,000 euros for joint accounts.
- Your German checking account to use as a reference account.
3 – Open your savings account:
Physically or online by completing the banks’ application process and/or signing a contract with all the terms and conditions applied. The contract must contain the agreed interest rate, the investment period and the amount you deposited, as well as other account specifications.
4 – Money deposit:
Some banks may require an initial deposit to open a savings account. The required amount can be in cash or through a transfer from another account.
5 – Account Activation:
Once the application process is complete, your account is ready. You will receive an account number and access details for online banking.
Final Thoughts
The right savings account for you depends on your situation, financial goals and preferences. With rising interest rates in Germany, placing money in saving accounts is becoming more popular. It’s important to stay informed about economic and financial developments in Germany and keep an eye on the European Central Bank’s announcements and actions.
Thank you for reading this article. We hope that the information we provided is helpful and that the comparison we did can help you with your research on different banks’ offerings since specific requirements and procedures may vary among different banks. Remember that by making an informed decision, you set yourself on the path to financial success and achieve your saving goals.
Maya Chidiac
Contributor
Forex and Money Market Senior dealer
Financial Markets, Banking and Finance Expert
